China’s Guangdong slashes foreign investment barriers amid challenges from coronavirus pandemic, US tensions

Guangdong has announced new measures to attract foreign firms to the province, including more lenient investment rules

The move comes amid a challenging international business environment made worse by geopolitical tensions and the coronavirus pandemic

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Guangdong province is introducing new subsidies and more lenient investment rules to attract foreign firms. Photo: EPA-EFE

Published: 4:30am, 30 Sep 2021Updated: 5:57am, 30 Sep 2021

China’s southern Guangdong province, the nation’s biggest manufacturing hub, has loosened foreign investment barriers to attract more multinational companies, echoing Beijing’s message that the country remains open for business despite pandemic disruptions, rising concern over protectionism and ongoing tensions with the United States.

At the first Conference on Multinational Corporations Investment this week, the Guangdong government said it had relaxed the total assets requirement for foreign companies wishing to set up new regional headquarters there to US$200 million from US$300 million, with removal of the requirements for paid-up registered capital and restrictions the offices must be a sole proprietorship.

The host of subsidies and tax rebates already offered to large foreign companies and investors remains unchanged.

The Guangdong government released a map of 21 advanced strategic industry clusters for foreign investment, including in green petrochemicals, advanced materials, semiconductors, new energy, and biomedical products.

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Myron Brilliant

It also announced the appointment of 12 senior executives from Fortune Global 500 companies as Guangdong’s first group of “Global Investment Advisers”.

Foreign investors at the event supported the measures, saying China remained the most attractive destination for investment during the pandemic, while voicing concerns over recent business challenges including geopolitical tensions, coronavirus lockdowns, the latest power supply crisis and raw material inflation.

Myron Brilliant, executive vice-president of the US Chamber of Commerce, said in a virtual address it was regrettable that tensions between the US and China have created uncertainty for foreign investors in both countries and around the world.